We've all heard of the "gift that keeps on giving." Some gift cards, however, are the gifts that can take away if you're not aware of the fine-print policies attached.
Many have fees, expiration dates or other accoutrements that lessen the dollar value.
While it's a rarity that gift cards aren't redeemed quickly — most that aren't simply were lost — Ellen Tolley, spokeswoman for the National Retail Federation, suggested consumers need to be aware of gift-card policies and limitations.
"If they are not, they should be," Tolley said. "It's important that all consumers be educated for all merchandise, and that applies to gift-card policies. Most national retailers have gift-card programs where the gift card does not expire and the amount does not depreciate. There are those with expiration or depreciation policies, but that's the exception to the rules."
Bankrate.com, a Florida-based Internet consumer finance organization, suggests every gift-card giver and recipient ask about:
Where the gift card can be used. It may be store-specific or unavailable for online purchases.
When the gift card expires. Some cards are worthless once the expiration date passes. Other programs allow replacement cards with remaining balances, but they tag on fees of $5.95 to $10 for the privilege.
Shipping and handling fees. That's especially true for online card purchases.
Service fees, which are common for cards purchased by phone or online, typically ranging from $3.95 to $11.95.
Monthly maintenance fees. Bankrate.com found that some gift cards tack on such a fee if balances remain after six months or a year. For example, an American Express Gift Card has a $2 monthly fee after one year.
How to check the gift-card balance. Some programs allow checking by calling a toll-free number or using a Web site. Bankrate.com also suggests keeping track of the balance on your own. Keeping receipts is a good idea if cards are lost or stolen.
What happens if a gift card is lost or stolen? Some programs won't replace them. Others issue a new card if you have proof of the most recent purchase. Some programs charge a replacement-card fee of $5.95 to $10.
Whether the gift card can be exchanged for cash. Many can't. Others charge check processing fees of $10 to $15.
Whether the gift card can be used to withdraw cash at an ATM. Some allow it, but with service fees ranging from $1.50 to $2.
Whether purchases can be made for an amount greater than the gift card. Bankrate.com suggests telling the merchant in advance. Some stores also accept only two forms of payment for a single purchase if the second is cash or a personal check.
Details are available at www.bankrate.com.
"Retailers are not trying to hide this information from shoppers, but shoppers need to realize it's out there," Tolley said. "Gift cards are great gift-giving alternatives and gift choices, but it's important to be an educated shopper and read the fine print. Just as different retailers have various return policies, they have various gift-card policies, and it's important to know what those are."
E-mail: bwallace@desnews.com